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Mattress Firm Files for IPO 6 Years After Going Private

Mattress Firm IPO

Mattress Firm has publicly filed for an IPO that will return the furniture retailer to the public markets six years after South Africa’s Steinhoff International took the company private.

The company said in a statement that it plans to list on the New York Stock Exchange under the symbol MRFM, the same ticker it used in its previous listing on the Nasdaq. In an S-1 filing with the U.S. Securities and Exchange Commission, Mattress Firm said that certain of its private investors plan to sell $100 million of stock via the initial public offering, although this is likely just a placeholder as the number of shares to be offered and the price range for the offering have yet to be determined.

Mattress Firm first announced in September 2021 that it had confidentially filed to go public. After going private in 2016, the chain hit a few bumps in the road, including an accounting scandal that saw the resignation of the current CEO. In 2017, Mattress Firm filed for bankruptcy to facilitate a prepackaged restructuring that included the closure of 700 underperforming stores. Today, the retailer operates 2,353 locations and said in its filing that “we are nearly twice the size of our next largest competitor (based on U.S. retail mattress sales) and eight times larger than the next largest multi-branded mattress specialty retailer in the United States (based on store count).”

“Since the beginning of fiscal 2019, we have fundamentally transformed our business across all functions,” the company wrote in the S-1. “We closed more than 950 stores, [but] estimate that we have been able to recapture a significant share of sales from these closed stores through neighboring locations, as well as online. In addition, over the past three years we negotiated favorable modifications of lease terms for a significant majority of our stores.”

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In its fiscal year ended Sept. 28, 2021, Mattress Firm reported that net revenues rose 34.9% to hit approximately $4.4 billion, but higher expenses led to a $165.1 million loss during that period compared to a $125.6 million profit the previous year.

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